This policy brief explains why it is important to understand the economic value of water security compared to other priorities. It also illustrates how the value of water is determined and describes the different perspectives of States and households. Policy briefs provide policy makers with information on water resources management. They are written by the GWP Technical Committee, a group of internationally recognised professionals in integrated water resources management.
Changing the behaviour of water users towards more sustainable practices is a necessary step in achieving water security. One way to promote such change is through economic instruments. Economic incentives involve the use of prices and other market-based measures to improve the way water is managed and used. They provide incentives to water users to use water carefully, efficiently, and in a manner consistent with the public interest. They have both positive and negative effects, rewarding users that recognise the true value of water and penalising profligate and anti-social use.
